TAXATION OF HOTELS, MOTELS AND BED & BREAKFASTS

The Arizona Department of Revenue and the various cities, in conjunction with the Arizona Hotel industry, have reviewed the various revenue categories generated by a hotel, motel, inn or a bed & breakfast.  A table of the revenue categories and the taxes to which they are subject can be found at Hotel Motel Matrix . 

In addition, the Arizona Department of Revenue has issued a Transaction Privilege Tax Ruling (TPR 06-1) on this subject.

The Arizona Department of Revenue also has a Transaction Privilege Tax Ruling (TPR 94-5) that the City of Tempe follows, which defines "Transient", those stays subject to the additional three percent (3%) tax.